Allstate Settles Class Action Lawsuit for $120 Million

Allstate Corp. has agreed to pay up to $120 million to settle a class-action lawsuit in California brought by employees for overtime pay issues, but it still denies any wrongdoing.

The Northbrook, Ill.-based company’s Allstate Insurance Co. unit agreed to pay the amount for unpaid overtime pay, meal and rest break violations, legal fees and other items. The settlement covers Allstate employees who were claims adjusters or in similar positions from November 1996 to December 2004.

Allstate said it still denies any liability or wrongdoing. In the second-quarter, it established a $120 million reserve for the settlement.

Shares of Allstate fell 28 cents to $55.93 in midday trading on the New York Stock Exchange. Over the past 52 weeks, the company’s shares have traded between $45.50 and $63.22.